Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesHard
A Florida construction company operates heavy machinery and equipment, such as excavators and bulldozers, which are frequently moved between various job sites. They are looking for coverage that would protect this equipment not only at their main yard but also while in transit and at remote construction sites. What type of policy is specifically designed to cover such mobile equipment?
- AContractors Equipment Floater (Inland Marine).
- BCommercial Property Policy.
- CCommercial Auto Policy.
- DEquipment Breakdown Coverage.
Show answer & explanationAnswer & explanation
Correct answer: A. Contractors Equipment Floater (Inland Marine).
A Contractors Equipment Floater, which is a type of Inland Marine insurance, is specifically designed to cover mobile equipment and machinery used by contractors. It provides coverage for the equipment while it is on a job site, in transit between sites, or stored at the insured's premises, addressing the unique mobility of such assets.
Why the other options are wrong
- B. A Commercial Property Policy typically covers property at a fixed location, not mobile equipment frequently moved between sites.
- C. A Commercial Auto Policy covers licensed vehicles and their liability, not typically heavy, unlicensed construction equipment or its physical damage.
- D. Equipment Breakdown Coverage covers mechanical or electrical breakdown of equipment, not physical damage from perils like theft, collision, or fire while mobile.
Contractors Equipment Floater
A type of Inland Marine insurance that provides coverage for contractors' mobile equipment and machinery, whether at a job site, in transit, or stored.
- Covers equipment like excavators, bulldozers, and tools.
- Provides broad 'all-risk' coverage for physical damage.
- Essential for contractors due to the mobile nature of their assets.
Memory trick: Floater: Your Gear 'Floats' to Safety.